The cost of starting a home health care business It varies according to the state where you operate it and it also varies according to the type of care you plan to provide.
In fact, you can think of both specialized or non-specialized care, as well as qualified or non-qualified licensed care and the cost will also vary.
What is the cost to open a home health care business
For the opening of a home health care business, it is necessary to take into account some details that will influence the need for initial capital, considering the licenses required, for example:
If you think about opening a non-specialized private payment agency, you should estimate an initial capital from 40 thousand to 80 thousand dollars.
The health license without Medicare it has a cost that varies from 60 to 100,000 dollars.
In the event that you think about opening a Medicare-certified agency, then you should evaluate a variable cost of between 150 and 350 thousand dollars.
Other considerations: You should also consider that the costs for opening the agency will always vary according to the state in which you plan to open it and even most of the opening cost will always have to do with state regulations depending on whether you obtain the corresponding licenses, since it is likely that you must hire licensed personnel, which has an additional cost, since it is not the same that you hire unlicensed personnel than licensed personnel, since the greater the professionalism, the greater the salary payment.
The physical space:
Even if you open the business at home, you must have a physical space to install the business office, so you must think that the state has the right to prove that your home is enabled to operate the business.
Then to the costs of the licenses you must add the cost that this state accreditation implies and the time that this accreditation will take will also influence the possibility of opening your business in the time you have stipulated.
Establish a starting budget:
Since the business will not start operating from the first moment of its opening, you must establish a budget oriented to the first year.
Well, regardless of federal and state regulations and the type of agency you plan to open, there are costs that are shared by all businesses of this type.
For example common costs include marketing management, the cost of the telephone, the salary of the staff, the office supplies with the necessary furniture in addition to the cost of opening a Medicare agency.
In this case, it is an essential requirement that the staff have at least 10 patients in their care, therefore this cost must be considered in your budget as an initial cost and will not be recoverable.
You must even have a bank account with a certain amount of money that is determined by the state and Medicare, since it is necessary that you check your financial stability.
How to Start a Successful Home Health Care Business
Create a home health care business It is a job that involves waste of energy and a lot of time, so you should think that the aforementioned initial cost should be considered as part of the reimbursement that you will need to be able to establish yourself financially while you start the business.
If you do not include or consider this expense, it will lead you, as the owner of the agency, to work without thinking about the cost of the start-up and therefore it will be the reason for you to fail.
In fact, first of all you must know what the marketing plan will be based on knowing the cost of marketing and the cost of the staff that will help you in the business.
You should even estimate the number of potential customers, because it will be information that will allow you to perform an analysis on data, through which you will determine the cost of the flows.
If you keep control of the costs, you will be able to know where you have placed your money and from there you will be able to correct or modify the expenses.
Then, you must investigate everything about the type of business you are about to open and once you open your business, you will continue investigating and taking into account the active clients, those who no longer hire your services and the loss or profit that the customers throughout the week.
In turn, it establishes the number of hours of profit and loss in the week in relation to each client, since you could have gained new clients, but in any case there could have been a financial loss based on the hours / clients gained and lost .
Recruitment and retention:
These functions correspond to human resources that will derive from you if you established a sole proprietorship, therefore you will recruit talents and experience that will help you improve the business.
You will recruit the candidates with the best qualifications and you will apply the retention of the employees who add greater value to your company with incentives, for example you can increase the salary of the employees you decide to retain, but always in consultation with the Equal Employment Opportunity Commission of the States. United, so that you are not accused of discriminatory practices.
Well, in this sense you must evaluate the cost-benefit of retaining some employees or hiring new ones and then you will assume the cost, according to the evaluation you have made.
Keep track of the caregiver’s costs including their salary, all associated taxes, and the supplies you provide, which will result in direct costs.
It then evaluates the total number of caregivers and the weekly pay involved in hiring them. The hours worked by each caregiver, the number of caregivers per group, and the number who are active.
The result of the evaluation of this data will allow you to consider the number of busy caregivers of active clients and the amount of time available based on which a caregiver may have time available to take care of new clients.